66 / 113
1
CLAUSES TO ADD
PERFORMANCE CLAUSE:
If the event occurs at the Fairmont Hotel Macdonald and Group
does not use the entire room block reserved by this contract as defined by the Guest Room
Accommodations, Group agrees that Fairmont Hotel Macdonald may suffer damages which
would be difficult to determine. Damages for lack of performance will be based on a minimum
commitment of 70%
90%
of the Group’s Guest Room Accommodation commitment.
To determine attrition damages, apply the following formula:
1. Determine the Group’s minimum block by multiplying the total number of rooms blocked
364
room nights
by 70%
90%.
2. Determine the number of total rooms available in the Fairmont Hotel Macdonald for sale by
subtracting complimentary and out of order rooms from total inventory.
3. Determine unsold rooms by subtracting total occupancy from total rooms available.
4. For each room night, Group will pay the amount equal to 70% (loss profit) of the Group’s
single confirmed group rate (
$256.75 avg. rate)
(plus tax, if required by applicable law) times
either the number of unsold rooms in the Fairmont Hotel Macdonald; or the difference between
Group minimum block and actual Group pick-up whichever is the lesser amount. This amount
will be
considered “unsold room revenue” payable to the Fairmont Hotel Macdonald as liquidated
damages, and not a penalty, in a reasonable attempt by parties to calculate the damages
suffered by Fairmont Hotel Macdonald for losses due to Group’s breach.
5. For any day that the Fairmont Hotel Macdonald achieves 95% occupancy or higher
with an
average daily rate above contracted rate
during the event dates, the Group will receive full credit
for achievement of the contracted block for that day.
At the request of Group, Fairmont Hotel Macdonald will submit to Group a copy of the Fairmont
Hotel Macdonald’s city ledger or daily report showing the information necessary to perform the
above calculations to see if a credit is due to the attrition portion of Group’s obligation. Fairmont
Hotel Macdonald agrees that
after receipt of this payment it will not seek additional damages related to the sleeping room
commitment provision in this
Agreement from Group for not utilizing the full room block.
Lowest Rate:
From the date of contract signing to group’s cut-off date, the Fairmont Hotel
Macdonald guarantees that no rates via published or internet will be lower than the above group
rate over the peak program dates. This does not include previously negotiated corporate,
wholesale and group rates.
Reservation Crosscheck
If there is a discrepancy between the Fairmont Hotel Macdonald’s reported pickup figures and
the figures believed to be accurate by Group, Group will furnish the Fairmont Hotel Macdonald
with a list of attendees to be compared with the Fairmont Hotel Macdonald’s list of in-house